This is long overdue.. Even the UK is taking advantage of it.

rhythyson: Britain is set to become the first non-Muslim country to sell a bond that can be bought by Islamic investors in a bid to encourage massive new investment into the City.


David Cameron will say in a speech on Tuesday at the World Islamic Economic Forum in London that the Treasury is drawing up plans to issue a £200m Sukuk, a form of debt that complies with Islamic financial law.


The new sharia-compliant gilt will enable Britain to become the first non-Muslim country to tap the growing pool of Islamic investments that is forecast to top £1.3 trillion by next year.


The Prime Minister will say that it would be a “mistake” to miss the opportunity to encourage more Islamic investment in the UK and that the City of London should rival Dubai as a centre for sharia-compliant finance.


“When Islamic finance is growing 50pc faster than traditional banking and when global Islamic investments are set to grow to £1.3 trillion by 2014, we want to make sure a big proportion of that new investment is made here in Britain,” Mr Cameron will tell an audience of senior officials from Islamic countries

Among those at the meeting are Sultan Hassanal Bolkiah of Brunei, King Abdullah of Jordan, Afghan president Hamid Karzai and Prince Salman bin Hamad Al Khalifa, Crown Prince of Bahrain.

The World Islamic Economic Forum has never been held before in a non-Muslim country and highlights the growing role London is playing in the Islamic finance industry.

The London Stock Exchange is preparing to launch an Islamic Market Index to help the managers of sharia-compliant funds identify new investment opportunities.

The UK’s plans to issue its own Sukuk could lead to billions of pounds of British gilts being sold to Islamic investors, enabling the Treasury to diversify away from its traditional sources of funding.

“For years people have been talking about creating an Islamic bond – or Sukuk – outside the Islamic world, but it’s just never quite happened,” Mr Cameron will say. “Changing that is a question of pragmatism and political will. And here in Britain we’ve got both.

To comply with sharia law, Islamic investors are forbidden to receive interest. Sukuks avoid this problem by ensuring the fixed return investors receive on the debt is linked to the profit generated by an underlying asset.

The value of Sukuks already listed on the London market has reached $34bn (£21bn) over the past five years with nearly 50 bonds quoted by the London Stock Exchange.

Sharia-compliant funds have already been used to fund some of the capital’s largest developments, including the Shard and the Olympic Village.

More than 20 banks currently offer Islamic financial products and services in the UK, more than any other Western country, with the number expected to grow further.

The Government has put securing links with growing financial centres in Islamic countries and fast-growing Asian markets at the heart of its plans for the City.

Earlier this month the Chancellor, George Osborne, announced a deal with China to make London a leading centre for the growing trade in renminbi-denominated assets and to make it easier for Chinese banks to set up investment banking operations.

Source:http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10410467/Britain-to-become-first-non-Muslim-country-to-launch-sharia-bond.html

https://www.nairaland.com/1498329/britain-set-first-non-muslim-country

oguash: if this is what will make the economy grow, so be it. one of the problem i have with this Jonathan administration is the tribal and religion divide we have. Ayo oritsejafor and co have greatly succeeded in creating a big divide in this country and if we must grow , we must learn to tolerate one another. Mathew hassan Kuka is a great and shining example an average Christian is to emulate. my problem with dis govt also is that they are always quick to borrow and the money ends up in pocket of a very few politician instead of using it for its purpose.

Guilible skull

DP

kane45: Nigeria is a circular secular state and therefore, no sector of d economy was is supposed to be islamised.

Nawa for Nairalanders o!

Gud plans but wats behind de agenda we dont know. Let dem start from de north. And besides wat happened with FG budget? Does it mean dat we have bin reduced to use a religious money to build our country? Very bad idea!
I not impress.

Nonybb: Did Muhammad invent any banking model? Why the word "Islamic" in it. This is a simple question. It wasnt a hindu bank, we dont have bindhu bank, we dont have christian bank, eventhough it was christians that invented the the current modern coventional method of banking and cashing with ATM and so on and so forth. Why should u people single handedly call it "islamic thing". Dats wat i want to knw

demented fellow, y not freely take ur problems to [b]google or better still doogle ? Bye[/b]

Mr Aboki:





Islam will indeed dominate the world.




Allahu Akbar!

Tell me how u people could accomplish that. Bombing of churches have failed already and your only Hope shekau Abubakar is death, so how feasible in your plan.

Ayekotoo:
Jonathan wants to islamise Nigeria

And another dimwit. Ignore the fact that Islamic loans dont attract any form of interest, thus making it cheaper for us to borrow from that section of the capital market.

Mr Aboki: Allahu Akbar









I hope all you anti-Islamic banking people will not use our Islamic bridges, buy our Islamic petroleum products and use our Islamic Airports?!

I hope Allahu Akbar would be written in red letters all over our products so the 'infidels' can be scared away

Nonybb: Late Muhammad is not the best of mankind. Even yourself is better than Muhammad in terms of se.xual discipline because u didnt snatch the wife of others, u kept or r.ape no slaves, u couldnt let your sympathy and conscience marry a 9 year old baby, u fought no wars with your enemy, so why should muhammad be better than YOU? U are brainwashed

Now another person celebrating his ignorance and hatred. Am not suprise that u have been fed and u digested lies and baseless claims without looking into the codes of what is morally, ethical and what is socially acceptable.

He was a father, a husband, a teacher, a leader, a helper, a solider, a banker, he was an example of what a man can be on earth. histary have celebrated him even of u have been brain washed by the wrong information u have. Educate your mind and go back to the books of authentic history. NO MAN HAS INFLUENCED MANKIND more than what My beloved prophet MUHAMMED has done. He has the best of morals you can ever imagine.

take it or leave it, he has left his foot print on the surface of the earth that no man or group of people can erase. He his the best of mankind MUHAMMAD

My brother, thank you VERY MUCH!! You have said it all.

Seriously, I'm quite concerned that the population of airheads and ignorant buffoons on nairaland keeps growing everyday.

Le Stylo: The level of ignorance in Nigeria is unbelievably alarming. And the realisation is disturbing. The Sukuk is becoming increasingly popular because its interest-free, and is guarded by strict ethics.

Mumudom!

Nonybb: Tell me how u people could accomplish that. Bombing of churches have failed already and your only Hope shekau Abubakar is death, so how feasible in your plan.

Kai. You are so bitter. And d Mr aboki is not even aboki nor is he a Muslim. So, keep that hatred and focus on matters like,

Is Nigeria going to benefit in the long run?

Slizbeat:

I know that, am just saying. why should there now be an Islamic bond in the present Nigerian system?? Am not even against it but as you know, there are two sides to a coin and to everything as philosophy is concerned.

What is the other side of this funding?? And again, why introduce it into a kind of society like Nigeria??

Why introduce it?

Because it is sooo beneficial.

Nigeria's problem has never being about money or the inability to pay her loan but effective and efficient management of her finance. So we dont need any Islamic banking to finance federal projects. The predominantly muslim states can burrow if they wish.

Its called Islamic because Islam has its own economic system which zakat (tax), interest free banking, profit and loss sharing business ventures/banking system, sukuk (Islamic bond) is a part of, its guided by the Qur'an and the hadith.

It's best the non Muslims understand how it works and stop shouting they want to islamise Nigeria. The west is beginning to adopt this system because they've seen the advantages of it, so go and learn and stop being paranoid.

ok oooo let watch and see patience is good virtue

deols:

Kai. You are so bitter. And d Mr aboki is not even aboki nor is he a Muslim. So, keep that hatred and focus on matters like,

Is Nigeria going to benefit in the long run?

I hate it when you bust my bubble like that!!





I am that I am mode..

Just build first.

Ayekotoo:
Jonathan wants to islamise Nigeria

ocelot2006:

And another dimwit. Ignore the fact that Islamic loans dont attract any form of interest, thus making it cheaper for us to borrow from that section of the capital market.

I am sure you didn't sense the Sarcasm in @Ayekotoo's comment

Occurences like these help put a lie to the divisive politics GEJ and his handlers/propagandists have been playing with gullible Nigerians all these while

For those who are quick to shout that Buhari will Islamise Nigeria cos he is a Muslim and from the North I wonder what you all are going to say after reading this news

Even Gov Peter Obi a Catholic christian was exposed by Dr Chris Ngige during the debates to also have taken a loan from Jaiz Bank(Islamic Financial institution) whereas he uses stoopid propaganda to deceive gullible Anambrarians that he hasn't taken any loan and that a party is Pro-Islam or Pro-Ethnic bias

What am saying in essence is for all of us to open our eyes and not allow all these politicians to ruin this country for us by knocking our heads against each other by using Religion and Ethnicity to further polarise us while smiling sheepishly behind the curtains after getting our votes

Let's elect to vote performers over people of perfidious character

Slizbeat: A country split roughly between Islam and Christianity can not afford to carry out such.

Why not Christianity bond or traditional bond??
What of the other side of this financing??

Please do that in the Northern Nigeria or better still, break away into northern republic.

Religious chauvinism should not be played out, Religious tolerance should be our guide if we are to continue as a nation together.

What are you saying? Have you ever heard of that? Stop being sentimental. Let us move the country forward.

Obiagelli: more like finance 2015 ambitions. I wonder if buhari had made this suggestion.

brainless female

Mr Aboki:




I hate it when you bust my bubble like that!!





I am that I am mode..

Sorry

Could not help it

Allahu Akbar.
Too many Christian bigots on this thread. Islam is here to stay and dominate get that in your skulls and stop fighting useless battles.

Which airport are we renovating and upgrading again.

Ayekotoo:
Jonathan wants to islamise Nigeria

Very daft ... You should be banned for the comment above, numb skull!

WHIZBRO:



Why don't you start by shutting your sh*t hole and smoking Ganja, and watch the condition of the world take a quantum leap.

Which useless quantum leap

Someone should tell SLS that he can encourage muslim dominanted states to burrow but he should not make it a collective burrowing through the FG.

Mr Aboki:

You have arabic on your money, have been ruled by more Muslims than christians, have the richest man in Nigeria as a Muslim, contribute to fund pilgrim of muslims to Saudi every year.. Whatelse is remaining for you to know that Nigeria is more Muslims that anything else..

Plus, If Nigeria being a Muslim Country is gonna make us better, wouldnt you accept it?

yea, muslims like sani Abacha and Buhari

Cubeet: Their plans to Islamise Nigeria wont work

it just won't work